By Mike Adeyemi
Small and Medium Enterprises (SMEs) have been described as bedrock of economic growth and development of any economy.
The Chairman, Board of Harmony Holdings, Prof, Kenneth Adeyemi stated this at the Annual General Meeting (AGM)of First Heritage Micro Finance Bank held in Oro-Ago, Ifelodun Local Government Area of Kwara State, recently.
According to him, the role of small and medium scale enterprise in the development of any economy cannot be over-emphasised, urging the Kwara State government to strengthen the sector.
“The state government has to deepen its SMEs tentacles because the sector has the capacity to employ large percentage of youths, which the government cannot afford to because the civil service is over-bloated.
“To boost Kwara economy, we have to depend on micro, small and medium scale enterprise. As long as the government can encourage that, there will be a paradigm shift in the economic activities of the state because, the sector is an haven for employment generation”, Adeyemi noted.
He further said that one of the best ways the state government can promote and encourage small and medium enterprise in Kwara is to guard against multiple or double taxation.
He, however, noted that “Micro finance banking in Kwara has evolved over the years and has contributed to the economic growth of the state.
” It has afforded loan seekers in rural areas to access fund for the expansion of the enterprise which the conventional commercial banks could not do, owing to heavy overhead. “
Speaking on the financial status of the First Heritage Bank he explained that the business environment during year 2017 was full of uncertainty.
“The increasing level of insecurity in the country and the fear of uncertainty had a serious effect on the nation’s economy in year 2017 and it has even become more challenging today.
“It is however expected that the economic environment in 2018 would remain stable as the country is getting out of recession. 2018 is the year preceding the 2019 general elections in the country when political activities may affect the implementation of government’s economic policies as politicians would be busy with their political future, “he said.
Adeyemi, who is also the chairman of the board of the bank added, ” In the current financial year, we are consolidating and strengthening the existing outlets while major investment has been made on the bank’s information technology. “
Also speaking at the event, the Managing Director of the bank, Pastor Enoch Ajibola, lauded the state government for paying attention to the SMEs.
“We had a cordial relationship with the Kwara State government. The bank is one of the micro finance banks in partnership with the state in the disbursement of its credit facilities. “
He disclosed that the share capital of the bank, which has been in operation for 25 years has risen to 1N88million.
